Nakamoto Holdings, the Bitcoin treasury firm led by Bitcoin Magazine CEO David Bailey, has seen its stock collapse by over 98% since its May high after a wave of investor selling linked to its $563 million private investment in public equity (PIPE) deals.
The company, which merged with Utah-based healthcare operator KindlyMD earlier this year, became one of the few publicly traded firms structured as a Bitcoin (BTC) holding company.
However, its financing model, which involved selling heavily discounted shares to private investors to fund Bitcoin purchases, backfired when a large batch of PIPE shares became eligible for sale in September. The resulting flood of sell orders cratered the stock price, erasing billions in market value, Bailey said in a recent interview with Forbes.
Bailey, known for his prominent role in the Bitcoin community and ties to US President Donald Trump’s pro-crypto push, has framed the downturn as part of a long-term play. “People that are just looking for a trade are actually very expensive capital for us,” he told Forbes, calling for “long-term aligned partners.”
Related: KindlyMD shares slide on $5B stock offering for Bitcoin buy
Nakamoto holds 5,765 BTC worth $653 million
Despite the rout, Nakamoto continues to hold 5,765 Bitcoin, valued at around $653 million, on its balance sheet. According to BitcoinTreasuries.NET, this makes Nakamoto the 19th largest public holder of Bitcoin.
Bailey said he plans to fold several of his other ventures, including Bitcoin Magazine, the Bitcoin conference and hedge fund 210k Capital, into Nakamoto to bolster the company’s cash flow and strengthen its position as a Bitcoin-first conglomerate.
The company’s stock, which trades on Nasdaq under the ticker NAKA, remains at a steep discount relative to its Bitcoin holdings. It is currently trading at around $0.9480, down from its May high of $25, according to data from Yahoo! Finance.
Related: Convertible Note Deals Hit IREN and Kindly MD Stocks
Metaplanet launches $500 million buyback to boost share value
Nakamoto is not the only Bitcoin holder facing pressure. On Tuesday, Tokyo-listed Bitcoin treasury firm Metaplanet announced a 75 billion yen ($500 million) share repurchase program to support its share price after it fell below the company’s Bitcoin-backed net asset value (mNAV).
The board-approved buyback will allow the firm to repurchase up to 150 million shares (13.13%) through the Tokyo Stock Exchange until October 2026.
Metaplanet’s mNAV recently dipped to 0.88 before rebounding to 1.03, prompting the company to pause new Bitcoin purchases. It currently holds 30,823 BTC worth around $3.5 billion.
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